Bitcoin (BTC) just experienced a significant, sharp price surge after trading around the $3,500 level for some days now. The world’s largest digital currency by market cap just tested a new monthly high yesterday, and this validates the falling wedge breakout seen in the 4-hour chart of the digital currency on Friday.
The high volume of the digital currency to a new monthly high might be the beginning of a stronger rally over the major hurdle close to the $4k mark. Bitcoin (BTC) amassed enough momentum on Monday and surged to $3,727 at 07:00 UTC. This is the largest value the digital currency has attained since January 19, validating the falling wedge breakout on Friday, according to Bitstamp data.
The Move of Bitcoin (BTC) Indicates a Bearish-to-Change Trend
Since Bitcoin (BTC) surged over the $3,700 mark, the digital currency has gathered enough traction to keep surging higher. Not only did the digital currency test a new monthly high, but it is also now trading very close to its major resistance which is the $4k level. Moreover, with a move over the $3,700 levels, the digital currency has also witnessed an inverse head-and-shoulders breakout. This indicates a bearish-to-bullish trend change, and it has paved the way for more gains towards the $4k level.
However, the digital currency might encounter some stiff hurdles on its way higher. Bitcoin (BTC) broke a key resistance close to the $3,760 level – the upper edge of a containing triangle carved out over the past 8 weeks. If the digital currency had failed to break over that level, it would have weakened the near-term bullish case. Fortunately, it broke over that level with ease and it is now faced with the resistance near the $4k level.
Nevertheless, the digital currency is likely to break over that resistance level this week, as the massive price rally to a new monthly high is backed by an upsurge in both long positions and trading volumes – bullish bets.
Bitcoin (BTC) Price Today – BTC / USD
Over the past twenty-four hours, the trading volume of Bitcoin (BTC) has jumped to the highs over $9 billion for the first time since the 20th of December last year, according to data from coinmarketcap.com. In addition, BTC/USD longs on Bitfinex surged to the high of 38,237 yesterday – the highest level seen since March 30th last year.
Long positions are still down by about 7% from record highs over 40,000 Bitcoin seen in March last year. Hence, the chances of a long-squeeze – a sudden decline in value as a result of the unwinding positions – is very low. So the possibilities of Bitcoin (BTC) breaking over the resistance near $4k is very high.
At the time of writing, Bitcoin (BTC) is trading at $3,950 after an increase of more than 5 percent over the past twenty-four hours. The market cap of the digital currency has risen to $67.95 billion and its trading volume over the past twenty-four hours is $9.30 billion.
The inverse head-and-shoulders breakout of the digital currency indicates scope for price rally over the $4k level – target according to the measured height method. Major averages are starting to align in favor of the bulls too. The 50-candle moving average is now moving higher and the 100-candle moving average looks set to break over the 200-candle moving average from below, forming a bullish crossover. The digital currency is currently supported at the $3,860 mark, however, it still poised to amass more gains in the short-term